18 October was World Menopause Day, an annual global initiative designed to raise awareness and education about how menopause impacts women’s lives - including your finances.
A study reported by Science Direct found that more than half of surveyed women aged 50 reported at least one disruptive menopausal symptom extending beyond the “normal” discomfort. Indeed, women with severe symptoms were 42% more likely to leave their jobs by the age of 55, and 23% more likely to reduce their working hours.
These changes could result in a reduced income, which can limit your ability to contribute to your savings or pension. In more extreme cases, you may even need to dip into your savings to cover daily expenses, potentially leaving you with a shortfall later in life.
This makes it more important than ever to manage your finances effectively if you’re approaching or undergoing menopause. Continue reading to discover some practical ways to do so.
Understanding the challenges you might face could help you plan ahead
Understanding the long-term financial effects of menopause could be a practical first step to help you plan for it.
For instance, a report from Royal London examined how menopause might affect a woman’s retirement savings. The study calculated the potential impact for a 50-year-old woman earning £40,000 annually with a pension pot of £100,000.
If she continued working full-time until she reached the State Pension Age, she would have an estimated £355,510 in her pension fund.
However, if menopause caused her to leave the workforce at 50, that figure could drop to £229,202, leaving her £126,000 worse off in retirement.
So, if you’re yet to go through the menopause, recognising these potential outcomes could allow you to plan effectively and give you time to adjust your strategy before any challenges arise.
Saving ahead of time might soften the financial effects of menopause
Perhaps one of the more proactive methods to protect your finances in preparation for menopause is to build an emergency fund ahead of time, to cover any expenses if you’re struggling later.
This should ideally cover between three and six months’ worth of household expenses, saved in an easy access savings account.
If you have multiple dependents or are already retired, you may want to increase your fund to contain between one and two years of savings.
With this in place, you might not have to sell investments held within your pension at a time when markets are experiencing temporary volatility, reducing the overall value of your fund.
In addition, it’s wise to make the most of your Individual Savings Account (ISA) allowance. For the 2024/25 tax year, this stands at £20,000, allowing you to shield your returns from Income Tax, Capital Gains Tax, and Dividend Tax.
These measures may ensure that you can protect and grow your wealth while preparing for any health-related costs you may face during menopause.
Locating any old pension pots can bolster the overall value of your fund
As menopause often happens in the years preceding retirement, it might be wise to track down any old pension pots to bolster the overall size of your fund.
You might be surprised about the forgotten pension wealth you have, as FTAdviser reveals that the average person in the UK believes they have around £13,303 sitting in approximately three lost pots.
To start with, it’s worth checking any old paperwork from your previous providers or getting in touch with your old employers. They should be able to give you key details that help you track down your forgotten pots.
Alternatively, you could simply use the government’s Pension Tracing Service, a database of personal schemes that helps you locate the details of any previous providers.
Locating these old pots can give your overall fund an invaluable boost, which could be especially useful if menopause forces you to reduce your working hours or retire earlier than expected.
Your employer might be able to offer additional support
These days, many businesses are rightly recognising menopause as a significant health issue that deserves support.
As such, communicating with your employer could be another helpful strategy for managing your finances during menopause.
Some companies may offer flexible working hours, allowing you to manage any symptoms without sacrificing your career.
For instance, you may be able to work from home on particularly challenging days or take on a senior management role part-time. In some cases, your employer might even offer unpaid leave for a year, allowing you to take time off without leaving your job for good.
Additionally, your employer may offer several healthcare benefits. Private health insurance, for example, could provide faster access to specialist care for menopause-related symptoms, while mental health support could help you manage the emotional effects of menopause.
By speaking to your employer, you could gain access to some much-needed support, as well as reduce the likelihood that they’ll lose a highly skilled employee.
Working with a financial planner can lift a weight from your mind
Managing your finances when you’re undergoing menopause can be complex, especially when you’re balancing a reduced income with any potential health-related costs.
This is why professional guidance can be invaluable. A planner could help you review your current financial situation and develop a bespoke plan that takes your income, savings, and pension needs into account during this challenging period.
They can also help you assess your investment portfolio and reduce your levels of risk if needed, ensuring your assets remain aligned with your long-term goals and your current health.
To find out how we can ensure you have a robust financial plan and can manage your wealth during menopause, please email us at
enquiries@darscowealth.co.uk, or call 07913 112717.
Please note
This article is for general information only and does not constitute advice. The information is aimed at retail clients only.
A pension is a long-term investment not normally accessible until 55 (57 from April 2028). The fund value may fluctuate and can go down, which would have an impact on the level of pension benefits available. Past performance is not a reliable indicator of future performance.
The tax implications of pension withdrawals will be based on your individual circumstances. Thresholds, percentage rates, and tax legislation may change in subsequent Finance Acts.
The value of your investments (and any income from them) can go down as well as up and you may not get back the full amount you invested. Past performance is not a reliable indicator of future performance.
Investments should be considered over the longer term and should fit in with your overall attitude to risk and financial circumstances.
Note that life insurance plans typically have no cash in value at any time and cover will cease at the end of the term. If premiums stop, then cover will lapse.
Cover is subject to terms and conditions and may have exclusions. Definitions of illnesses vary from product provider and will be explained within the policy documentation.
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